The general logical line is that for a long time before the rise of stablecoins, Ether was used as Layer 2 at the BTC asset level, because the electronic cash transaction system of BTC itself was essentially a failure and a large amount of BTC was used for digital gold purposes, and because of the limited scalability of the Omni network, people started looking for new projects that could carry the transactions themselves, and the recent Ether’s high GAS fees also showed the opportunity of Layer 2, so we chose an Ethernet Layer 2 project Coda, as well as the traditional Layer 1 projects NEAR and Avalanche Protocol for augmentation.
The blockchain logical architecture is divided into three layers in the OSI model of computer network communication architecture. The existing scaling schemes are improved for different layers, namely Layer 0/1/2.
Layer 0 scaling requires changing the underlying transport data
Layer 1 scaling improves blockchain efficiency by changing the blockchain protocol
Layer 2, on the other hand, is modified at the application level.
On-chain scaling is mainly about increasing block size or using faster consensus algorithms
There are four types of off-chain scaling: state channel, sidechain, cross-chain and off-chain computing, which can be interpreted as reducing the pressure on the chain by putting the unimportant off-chain parts.
So far, each of these scaling schemes has provided a solution to improve scalability. There have also been multiple solutions combined to improve scalability.
Today we will talk about segwit of BTC networks.
Segwit is an upgrade to Bitcoin’s consensus rules and network protocol, whose proposal and implementation will be based on the BIP-9 soft fork.
In cryptography, the term “witness” is used to describe the solution to a cryptographic challenge. In Bitcoin, “witness” satisfies a cryptographic condition that is placed on an unspent transaction output (UTXO).
In the Bitcoin context, a digital signature is one type of witness. But a “witness” is a broader arbitrary solution that can satisfy the conditions imposed on a UTXO so that the UTXO can be spent after it is unlocked. The term “witness” is a term more commonly used for “unlocking scripts” (or scriptSig).
Prior to the introduction of “segwit”, each input transaction was followed by the witness data used to unlock it, and the witness data was embedded as part of the input. The term “segregated”, or simply “segwit”, is simply understood witness as the separation of signatures for a particular output, or the unlocking of scripts for a particular input. In its simplest form, this is called a “segregated scriptSig”, or “segregated signature”.
Thus, segwit is a restructuring of Bitcoin designed to move the witness data portion of a transaction out of the scriptSig field and into a separate witness data structure athat accompanies the transaction. Clients requesting transaction data can choose to have or not have that portion of the accompanying witness data.
In short: The data structure of the Bitcoin network consists of the following parts, each transaction information is contained with the signature information of that transaction, and the signature information takes up a large part of it.
The miner needs to verify each transaction one by one with a digital signature when packing the block, and will only record the transaction in the block after confirming that there are no problems. This will inevitably cause each block size to be too large and each transaction to take too long to verify.
Segwit the way each transaction content is laid out. Taking the script signature out of the structure of the transaction content and pointing to it via a pointer. This ensures that more transactions can be stored in the same 1MB block size.
Of course, the advantages of segwit go beyond expanding transaction capacity.
Solves the Malleability Attack problem
Reduces individual transfer fees
It is actually a soft fork, not a hard fork
There are advantages and disadvantages, such as increased storage requirements for all-node wallets and the need for additional storage space.
Even though segwit has one advantage or another, not everyone is happy about it, and the BCH community is one group that has resisted segwita branch of the Bitcoin network that directly changes block sizes rather than relying on a new transaction structure for BTC forks.
As more wallets receive upgrades, the use of segregated witness will grow, and in addition, the development of the Lightning Network and similar Layer 2 should receive more impetus to expand Bitcoin’s use and boost its potential. We hope that such changes will happen gradually to advance the blockchain industry as a whole.
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